Recent News

In September, Latvia adopted a Law that introduces the obligation to submit public reporting by country (CbC). Thus, the country's domestic legislation will comply with the current European Union Directive 2021/2101. The law determines the procedure for preparing, submitting and publishing reports of international groups of companies. The subjects of the law are commercial companies and business entities registered in the Republic of Latvia, if they meet the established criteria and conditions. The report must include the name of the reporting parent, the reporting year, the currency used to prepare the report, information about all subsidiaries of the multinational corporation's parent included in the consolidated financial statements for the reporting years and established or registered in the European Union or tax jurisdictions, who do not cooperate in the field of...

The report was published by Tax Observatory. On average, companies registered in Ireland pay corporation tax at a rate of 7%. This is much lower than the declared effective income tax rate of 12.5%. That is why the country was called a tax haven. 58% of corporate tax revenue is paid by companies that use Ireland for tax optimization. Irish households had more than $120 billion in stocks, bonds, mutual funds and bank deposits stashed away in offshore tax havens, a study found. This represents approximately a fifth of Ireland's GDP in...

President Klaus Iohannis signed into law a package of tax measures that increase taxes. They are also canceling a number of financial benefits for IT, agriculture, food industry and construction. The Romanian government believes that tax increases and budget cuts were EU conditions for providing Romania with funds for post-pandemic recovery. The country must submit to EU pressure so that more than 29 billion euros allocated by Brussels for the country's Recovery and Resilience Plan can be transferred to Bucharest in full. However, the European Commission did not oblige Romania to take serious measures to reduce the budget deficit or to reduce expenses. With the help of innovations, the government tried to get additional funds for the budget by further taxing the private sector, instead of reducing the expenses of the state apparatus and refraining from raising the salaries of civil servants. The budget deficit at the end of September reached more than 11.2 billion euros. Government spending is also on the rise and is now 14% higher than in 2022. The new tax measures mean that micro-enterprises will pay a tax of 1% of turnover on revenues of up to €60,000 per...

The country's government introduced a new draft law in October that could change the current special tax regime for recently moved people - the so-called Lavoratori Impatriati. Now, in accordance with this regime, both Italians who returned to the country and foreigners who moved here for permanent residence can pay taxes for five years (or ten if they have children) only on part of their income (from 10% to 30% depending on region) if they have previously spent two years outside Italy. Under the new proposal, taxes would be levied on 50% of income in any region of the country. And the preferential regime will apply to those who spent three years outside Italy, and the period during which one cannot leave Italy, so that taxes are not recalculated at the standard rate, has been increased from two years to five. Having children will no longer help extend the grace period - it will be no more than five years in any case. In addition, if you have an income of more than €600,000, the preferential treatment will not apply. The bill is actively criticized within the country, mainly because the preferential treatment was originally aimed at attracting qualified Italians who left...

The Economic Crime and Corporate Transparency Act has been approved by the Parliament of the United Kingdom. It will expand authorities' ability to freeze and confiscate crypto assets associated with money laundering and drug trafficking. The authors of the document expect that expanding the arsenal of tools available to law enforcement agencies will increase the efficiency of the mechanism and speed up the procedure for seizing digital currencies associated with criminal activities. One of these measures is the ability to carry out confiscation without an indictment when there is strong evidence that funds were used in illegal transactions. The document contains provisions that allow authorities to seize other tools, for example, those that help track “criminal” crypto assets. The bill remains to receive royal...

The Canary Islands could lose €18 million in tax revenue due to the abolition of inheritance and gift taxes. The benefit will apply to first- and second-line heirs (children, spouses, uncles, aunts, nephews and nieces). The government is forced to take such measures in connection with the region's accession to the Valencian Community and the Balearic Islands. Financial advisor Mathilde Azian explained this decision by the fact that citizens of the islands already have a rather impressive tax burden in the form of having to pay income tax, capital gains tax and land tax. Regional inheritance tax may also apply to non-residents who receive assets as an inheritance or gift in Spain. You can get a 99.9% discount only on the first €300 thousand. Anything above this threshold will be taxed at a progressive rate of up to...

Italy's second-largest bank UniCredit said it would reserve 1.1 billion euros as "retained earnings." Thus, the bank wants to avoid paying 400 million euros in one-time tax on excess income. The bank called this decision a “rational choice.” The Italian authorities considered that the country's banks were making too high profits against the backdrop of an increase in interest rates by the European Central Bank. And thus they unfairly make money off of citizens. In August, a windfall tax was introduced with a rate of 40%, and as an alternative, it was proposed to set aside an amount 2.5 times higher than the one-time tax into a reserve. Other credit organizations may follow UniCredit's...

The Guide describes the Emirati understanding of the Arm's Length Principle and the structure of TP documentation. In addition, 25 examples are given in which transfer pricing rules are applied. Examples include related party transactions, financial services (hedging, treasury functions, capturing insurance, cash pooling), intragroup services, intangible asset transactions, business restructurings, Cost Contribution Arrangements (CCAs), PE transactions, Cash/bank settlement. Hyde should become the main source of recommendations on shopping centers. If some aspects are not covered by Hyde, companies are recommended to refer to the OECD Transfer Pricing...

FinCEN may designate cryptocurrency mixers as “money laundering hubs” that threaten national security. This form of sanction will require services to provide special reporting on any financial transactions. FinCEN believes that “the percentage of convertible virtual currency transactions processed by mixers that originate from likely illicit sources is increasing.” US authorities are concerned about the use of digital currencies by cybercriminals and terrorists. American lawmakers have called for decisive action to limit illegal cryptocurrency activities. US Senate Banking Committee member Elizabeth Warren published an op-ed stating that DeFi companies “should be subject to the same anti-money laundering rules as banks.” The director of anti-money laundering at the Crypto Innovation Council, Yaya Fanusi, opposed the senators' appeal. According to him, the current regulation of cryptocurrencies in the United States is consistent with anti-money laundering rules, and companies carry out AML/KYC procedures and comply with sanctions against...